Cant log in after Admin password reset.

Hi,
I have a PowerBook G4 and wanted to reset the admin as I got it from a friend.
I did this with now problems using this method

1. When start your Mac hold + and press button Command + S.
2. It’s should be your Mac entering terminal mode. Just type “mount -uw /” (without quote)
3. Type again “rm -f /var/db/.AppleSetupDone”
4. Then type “shutdown -r now”

Click to expand...

However, a friend asked me to have a look at his imac (Im assuming its Leopard or Snow leopard but not sure) and said that a disgruntled staff member had got into it and deleted everything.
There didnt appear to be anything in the Apps folder, no programmes etc.
Also she had run off with the OS discs too.

So I thought maybe I could do the above method and create a new account and start fresh.

After entering the above and rebooting I got the welcome screen to create a new account but when I hit the last 'continue' button it just keeps looping back to creating an account, even after rebooting.
Now I cant even get back to where I was originally.

Like a complete idiot i didnt back up the documents of the existing account before I tried this method.
The current guys here had created a few documents in the last few days and need them.
Is there anyway i can access the drive to pull the documents?
Or just access back to the old user account?

As Im a windows user mostly I know I could possibly just connect the hard drive to my other machine and grab them that way.

Any help will help me from pulling my beard off!

PS: We will need to purchase discs, would I need to buy a full version of Mac OS X, Im thinking as I cant log in the system must be buggered.

cheers

Yes, you need a full OS retail version.

(Don't pull! Use a razor.)

having a full retail version will enable me to recover the system and files?

Installing from a new disc will recover the OS. I think you want to do an Archive and Install. That will allow you to control what to get rid of later. It should not have any affect on files that reside on the hard drive.